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RESEARCH PROJECT REPORT

ON

TO STUDY THE IMPACT OF ADVERTISEMENTS ON

TELEVISION ON BUYING BEHAVIOUR OF CUSTOMERS

Submitted to the Punjab College of Technical Education, Ludhiana

Affiliated To

Punjab Technical University, Jalandhar

As the part of curriculum, Work Shop on Research Methodology

For the degree of

Master of Business Administration

Session (2006-08)

BY

Vivek Khattar

MBA 1(B)

University Roll No.6227222038

DEPARTMENT OF BUSINESS ADMINISTRATION

PUNJAB COLLEGE OF TECHNICAL EDUCATION, LUDHIANA

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ACKNOWLEDGMENT

The success of any project depends upon the hard work and endeavor of not one but

many, and this project is no expectation. Acknowledgement any one in mere words is a

very difficult job. I would like to pay my sincere thanks to all those person who helped

me during this project work with their able guidance and invaluable advice.

First and foremost, I convey my gratitude to Mr. Gautam Bansal (Faculty PCTE) for

providing me the opportunity to do a research project on the topic To study the impact of

advertisement on television on buying behavior of customers.

I am highly grateful to Dr. K.N.S Kang (Director of PCTE) to provide us lots of

knowledge in respect of Research Methodology and he is always ready for our help. And

provides us a lot of opportunities.

VIVEK KHATTAR

(Punjab College of Technical Education, Ludhiana)

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DECLARATION

I here by declare that the project entitled To study the impact of advertisement on

television on buying behavior of customers is an original work done by me as part of

my curriculum under the guidance ofMr. Gautam Bansal(Faculty) PCTE, Ludhiana.

The views and suggestions expressed are my own and have no link with any persons

opinion and the matter enclosed has not been submitted for the ward of any other degree

or diploma in the university.

VIVEK KHATTAR

(Punjab College of Technical Education, Ludhiana)

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CHAPTER 1

INTRODUCTION

Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods.

Or services by an identified sponsor. Ads can be a cost effective way to

disseminate messages, whether to build a brand preference or to educate people. The

organizations handle advertising in different ways. In small companies, someone

handles advertising in the sales or marketing department, who works with an

advertising agency. A large company will often set up its own department, whose

manager reports to the vice president of marketing. The departments job is topropose a budget, develop strategy, approve ads and campaigns, and handle direct-

mail advertising, dealer displays, and other forms of advertising. Different types of

advertisement is used for capturing the minds of different types of consumers as

there is a vast range of consumers in the country an organization has to go for

different types of medias of advertising.

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History

Black-figuredlekythoswith the inscription: buy me and you'll get a good bargain,

ca. 550 BC, Louvre Commercial messages andpolitical campaigndisplays have beenfound in the ruins of ancient Arabia. Egyptians usedpapyrusto create sales messages and

wall posters, while lost-and-found advertising on papyrus was common in Greeceand

Rome. Wall or rock painting for commercial advertising is another manifestation of an

ancient media advertising form, which is present to this day in many parts ofAsia,Africa, and South America. For instance, the tradition of wall painting can be traced back

to Indianrock-art paintings that go back to 4000 BC.[5] As printing developed in the 15th

and 16th century, advertising expanded to include handbills. In the 17th centuryadvertisements started to appear in weekly newspapers in England. These early print ads

were used mainly to promote books and newspapers, which became increasingly

affordable thanks to theprinting press, and medicines, which were increasingly sought

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after as disease ravaged Europe. However, false advertisingand so-called "quack" ads

became a problem, which ushered in regulation of advertising content.

Although advertising has existed for a long time, explicit "branding" is a product of thelate 1800s. Due to the prevalence of dangerous products and unregulated industries of the

Industrial Revolution, brands were introduced to increase the reputation and value of aparticular manufacturer. An identified brand often meant safety and quality. Quaker Oats

is among the oldest modern brands in continual use.

As the economy was expanding during the 19th century, advertising grew alongside. In

the United States, classified ads became even more popular, filling pages of newspapers

with small print messages promoting all kinds of goods. The success of this advertising

format led to the growth of mail-order advertising such as the Sears Catalog, at one timereferred to as the "Farmer's Bible". In 1843, the first advertising agency was established

by Volney Palmerin Philadelphia. At first, agencies were brokers for ad space in

newspapers.N.W. Ayer & Son was the first full-service agency to assume responsibility

for advertising content. It was also the first agency to charge a commission on ads.

At the turn of the century there were few career choices for women in business; however,

advertising was one. Since women were responsible for most of the purchasing in theirhousehold, advertisers and agencies recognized the value of women's insights during the

creative process. In fact, the first American advertising to use a sexual sell was created by

a woman for a soap. Although tame by today's standards, it featured a couple and said

"The skin you love to touch".

When radio stations began broadcasting in the early 1920s, the programs were airedwithout advertising. The first radio stations were established by radio equipment

manufacturers and retailers offering programming to sell radios. However many non-profit operators followed suit, such as schools, clubs, and civic groups.

A print advertisement for the 1913 issue of the Encyclopdia Britannica.

The 1960s saw advertising transform into a modern, more scientific approach in whichcreativity was allowed to shine, producing unexpected messages that made

advertisements more tempting to consumers' eyes. The Volkswagen ad campaign

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http://en.wikipedia.org/wiki/False_advertisinghttp://en.wikipedia.org/wiki/False_advertisinghttp://en.wikipedia.org/wiki/Quackeryhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Sears_Cataloghttp://en.wikipedia.org/wiki/Advertising_agencyhttp://en.wikipedia.org/w/index.php?title=Volney_Palmer&action=edithttp://en.wikipedia.org/w/index.php?title=Volney_Palmer&action=edithttp://en.wikipedia.org/wiki/Philadelphiahttp://en.wikipedia.org/wiki/N.W._Ayer_%26_Sonhttp://en.wikipedia.org/wiki/Encyclop%C3%A6dia_Britannicahttp://en.wikipedia.org/wiki/Volkswagenhttp://en.wikipedia.org/wiki/Image:Ad_Encyclopaedia-Britannica_05-1913.jpghttp://en.wikipedia.org/wiki/Image:Ad_Encyclopaedia-Britannica_05-1913.jpghttp://en.wikipedia.org/wiki/False_advertisinghttp://en.wikipedia.org/wiki/Quackeryhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Sears_Cataloghttp://en.wikipedia.org/wiki/Advertising_agencyhttp://en.wikipedia.org/w/index.php?title=Volney_Palmer&action=edithttp://en.wikipedia.org/wiki/Philadelphiahttp://en.wikipedia.org/wiki/N.W._Ayer_%26_Sonhttp://en.wikipedia.org/wiki/Encyclop%C3%A6dia_Britannicahttp://en.wikipedia.org/wiki/Volkswagen


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featuring such headlines as "Think Small" and "Lemon"(these were used to descirpe the

appearance of the car)ushered in the era of modern advertising by promoting a "position"

or "unique selling proposition" designed to associate each brand with a specific idea inthe reader or viewer's mind. This period of American advertising is called the Creative

Revolution and its poster boy was Bill Bernbach who helped create the revolutionary

Volkswagen ads among others. Some of the most creative and long-standing Americanadvertising dates to this incredibly creative period.

The late 1980s and early 1990s saw the introduction ofcable television and particularly

MTV. Pioneering the concept of the music video, MTV ushered in a new type of

advertising: the consumer tunes in for the advertising message, rather than it being abyproduct or afterthought. As cable (and latersatellite) television became increasingly

prevalent, "specialty" channels began to emerge, and eventually entire channels, such as

QVC,Home Shopping Networkand ShopTV, devoted to advertising merchandise, whereagain the consumer tuned in for the ads.

Marketing through the Internetopened new frontiers for advertisers and contributed tothe "dot-com" boom of the 1990s. Entire corporations operated solely on advertising

revenue, offering everything from coupons to free Internet access. At the turn of the 21stcentury, the search engineGoogle revolutionized online advertising by emphasizing

contextually relevant, unobtrusive ads intended to help, rather than inundate, users. This

has led to a plethora of similar efforts and an increasing trend of interactive advertising.

A recent advertising innovation is "guerrilla promotions", which involve unusualapproaches such as staged encounters in public places, giveaways of products such as

cars that are covered with brand messages, and interactive advertising where the viewer

can respond to become part of the advertising message. This reflects an increasing trend

of interactive and "embedded" ads, such as viaproduct placement, having consumersvote through text messages, and various innovations utilizing social networking sites (e.g.

MySpace).

Negative effects of advertising

An extensively documented effect is the control and vetoing of free information by theadvertisers. Any negative information on a company or its products or operations often

results in pressures from the company to withdraw such information lines, threatening to

cut their ads. This behavior makes the editors of the media self-censor content that mightupset their ad payers. The bigger both companies are, the bigger their relation gets,maximizing control over a single information.

Advertisers may try to minimize information about or from consumer groups, or

consumer controlled purchasing initiatives (as joint purchase systems), or consumercontrolled quality information systems.

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Another indirect effect of advertising is to modify the nature of the communication media

where it is shown. Media that get most of their revenues from publicity try to make their

medium a good place for communicating ads before anything else. The most clearexample is television, where this means trying to make the public stay for a long time and

in a mental state that encourages spectators not to switch the channel through the ads.

Programs that are low in mental stimulus and require light concentration and are variedare best for long sitting times. These make for much easieremotional jumps to ads, which

can become more entertaining than regular shows. A simple way to understand the

objectives in television programming is to compare contents from channels paid andchosen by the viewer with channels that get their income mainly from advertisements

Types of advertisement

Informative advertisement: it aims to create brand awareness and knowledge of the new

products or new features of existing products.

Persuasive advertisement: aims to create liking, preference, conviction and purchase of

a product or service.

Reminder advertisement: aims to stimulate repeat purchase of products and service.

Reinforcement advertising: aims to convince current purchasers that they made the

right choice. Automobile ads often depict satisfied customers enjoying special

features of their new car.

Roles of Advertising

Advertising can also be explained in terms of the four roles it plays in the business and

the society:

1. Marketing

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2. Communication

3. Economic

4. Societal

The Marketing Role:

It is the process a business uses to satisfy consumer needs and wants through goods and

services. The particular consumer at whom the company directs its marketing include the

product, its price and the means used to deliver the product or place. Marketing also

includes a method for communicating this information to the consumer called marketing

communication or promotion.

The Communication role:

Advertising is for of mass communication. It transmits the different types of market

information to match buyers and sellers in market place. An advertisement both informs

and transforms the product by creating an image that goes beyond straightforward facts.

The Economic Role:

There are two points of view about how advertisement affects an economy. In the first,

advertisement is so persuasive that it decreases the likelihood that a consumer will switch

to an alternative product, regardless of the price charged. By featuring other positive

attributes, and avoiding price, the consumer makes a decision on these various non-price

benefits. The second approach views advertising as a vehicle for helping consumers

assess value through price as well as other elements such as quality, location, and

reputation.

The Societal Role:

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Advertising also has a number of social roles. It informs us about new and improved

products and helps us compare the products and features and make informed consumer

decisions. It mirrors fashion and design trends and adds to our aesthetic sense.

Advertising tends to flourish in societies that enjoy some level of economic abundance, in

which supply exceeds demand.

Functions of Advertising:

Provides product and brand information:

Although many ads are devoid of information, providing the consumer with relevant

information that will aid decision-making is still the main function of advertising. The

information given depends upon the needs of target audience. In the case of purchasing a

new suit, needed information might be the price and outlet location.

Provides incentive to take action:

In most instances, consumers are reluctant to change their buying behavior. Even if they

are somewhat dissatisfied with their current product, a habit has been established and

learning about a new product is difficult. Advertising sometimes gives the consumers the

reasons to switch brands, if thats the goal.

Provides reminders and reinforcement:

Much advertising is directed at keeping current customers. Consumers forget why they

bought a particular brand of microwave or automobile. Advertising must constantly

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remind the consumer about the name of the brand, its benefits, its value, and so forth.

These same messages help reinforce the consumers decision.

TELEVISION ADVERTISEMENT

Television is a telecommunication system for broadcasting and receiving moving

pictures and sound over a distance and also refer to all the aspects of television from the

television set (or Internet) to the programming and transmission. The word is derived

from mixed Latin and Greek roots, meaning "far sight": Greek "tele", far, andLatin visio-n, sight (from video, vis- to see). A television sytem may be made up ofcomponents, so a screen which lacks an internal tuner is called a monitor rather than a

television. A television may be built to receive different broadcast or video formats such

as HDTV

Television was not invented by a single person, but by several individuals. The origins ofwhat would become today's television system can be traced back to the discovery of the

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photoconductivity of the element selenium by Willoughby Smith in 1873, followed by

the work on the telectroscopeand the invention of the scanning disk by Paul Nipkow in

1884. All practical television systems use the fundamental idea of scanning an image toproduce a time series signal representation. That representation is then transmitted to a

device to reverse the scanning process. The final device, the television (or TV set), relies

on the human eye to integrate the result into a coherent image.

Starting March 1, 2007, new television sets that receive signals [over-the-air] mustinclude digital or HDTV tuners for digital broadcasts, including pocket sized portable

televisions. Only expensive televisions are currently made with both kinds of tuners. By

2009, all U.S. television broadcasts will be exclusively digital, by order of the FederalCommunications Commission, which then auction off that portion of the spectrum for for

additional channels or other communications traffic. The ruling, which so far has met

little opposition from consumers or manufacturers, would render all non-digitaltelevisions dark and obsolete within 2 years. The FCC has determined that an external

tuning device can simply be added although they are currently not widely available,

expensive, and require bulky AC power supplies. Currently, even the earliest televisionscontinue to work with present broadcast standards. This mandate was designed to helpprovide a painless transition to the new standards.

Advantages

Television permits you to reach large numbers of people on a national or regional

level in a short period of time Independent stations and cable offer new opportunities to pinpoint local

audiences

Television being an image-building and visual medium, it offers the ability to

convey your message with sight, sound and motion

Disadvantages

Message is temporary, and may require multiple exposure for the ad to rise above

the clutter

Ads on network affiliates are concentrated in local news broadcasts and station

breaks

Preferred ad times are often sold out far in advance

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Limited length of exposure, as most ads are only thirty seconds long or less,

which limits the amount of information you can communicate

CHAPTER-2

INTRODUCTION

OF

RESEARCH PROJECT

Need of the research

To know whether it is necessary to advertise a product on television.

To know that does and advertisement on television really influences thecustomers to buy a product.

Objectives of the Research

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1 To study the affect of advertisements shown on the television on buying decisions of

the customers

2 To study the relevance of advertisements on television

3 To study the response of customers towards advertisements shown on the television.

4 To study whether the advertisements shown on the television provides any information

about the product to the customers.

Research Methodology

Research methodology is a way to systematically solve the research problem. It is a

science of studying how research is done scientifically and identifiably.

Research Design:

Research design is an arrangement of the conditions analysis of the data in such a manner

that aims to combine relevance to the research purpose with the economy in procedure.

The research problem having been formulated in clear-cut terms help the researcher to

prepare a research design. Here the research design is exploratory. Here the research is

being conducted to know the ultimate impact of the advertisements on the customers in

this research various medias of advertisement will be evaluated and the questionnaires

will be filled up which will help us in getting the suitable results.

Data Source:

The data will be collected by both i.e. Primary and Secondary source.

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Primary source: In this study of questionnaire method has been used for getting the

Primary data.

Secondary data: Sources of secondary information will include various Journals, books,

magazines and Internet. This also includes going through various related research

projects prepared by other students.

Sampling plan:

Population All the viewers in Ludhiana and Shimla.

Sampling unit Individuals whose age is above 18 years and who view Television.

Sampling Size Sample size refers to a number of items to be selected from the

population to constitute a sample. Due to constraints like time and money the sample size

selected for the research is 50 viewers of Ludhiana and Shimla city

Sampling Technique:

Sampling technique is a method or technique for obtaining the sample from the given

population. Convenient sampling technique is selected under which every item in the

universe has an equal chance of inclusion but according to the convenience of the study a

relevant number of viewers is to be taken.

Analysis Methods:

The data was tabulated and the frequency distribution was developed. The percentages

and mean score were computed from different variables to analyze the questionnaire and

selected advertisements were analyzed to know the impact of advertisement on

consumers.

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Limitations:

Although sincere efforts have been done to collect authentic and reliable information

from the respondents, even then the report is subject to certain limitations, which are as

follows:1. Time was the major Limitation, which may have affected the inferences drawn in

the study

2. Some of the respondents were reluctant to share the information with theresearcher

3. All the results and conclusions have been drawn on the basis of information

provided by the respondents, so it may lack authenticity

4. Some of the respondents being visited were preoccupied with their routine work,

so sometimes it was very difficult to obtain information from them.

DATA ANALYSIS

Do you watch Television?

Table 1 showing the number of people watching television

Yes No

Number of

Respondents

45 5

Percentage 90% 10%

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Number of People watching television

Yes

No

Thus is clear from the responses that 90% of the people watch television as out of the

total of 50 respondents 5 replied yes and only five responded that they dont watch

advertisements this may be due some reasons like they have a busy schedule or they arenot having access to television

No. Of people who like to watch Advertisement on television.

Table 2 showing percentage of people who like watching advertisements on

television

Yes No

84% 16%

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Percenatge of people who like watching Advertisements

84%

16%

Yes No

The above graph shows that 84%of the people like watching the advertisements shown

on the television and only 16% of the respondents said that they do not like the

advertisements shown on the television. Out of the total 50 respondents 42 said that they

like watching advertisements on television and only 8 said that they dont like watching

advertisement on television.

What appeals most to a viewer in an advertisement?

Table 3 showing the degree of appealing things I an advertisements

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Music Cathy

slogans

Comedy Concepts

used

Information

about the

product

Cartoons

23 18 33 13 13 6

23

18

33

13 13

6

0

5

10

15

20

25

30

35

Music

Catchy

slogans

Comedy

Concepts

used

Information

aboutthe

product

Cartoons

Series1

Thus from the above shown data it can be said that the comedy and the humor created in

the advertisements appeals the most to the viewers of the advertisements as 33 out of 106

responses states that comedy in advertisements appeals them the most and after that 23

out of 106 responses states that the music in the advertisements appeals the people

thereafter comes the other factors like catchy slogans happiness and cartoons shown in

the advertisements.

Table 4 showing: Does an advertisement on television provide any

information about the product

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76%

24%

Yes

No

A new question that arises in the mind is that does the advertisements shown on the

television provides any information abut the product in context to this question out of 50

respondents 38 said that yes they gather knowledge about the product from the

advertisements shown on television and the rest 12 said that advertisement on television

does not provide any knowledge about the product this shows that advertisements provide

information to 76% of the viewers.

Attention toward advertisements:

The next question arises in the mind of every researcher that does the viewers really pay

attention towards the advertisements shown on the television of various products many

people say that if an advertisement comes in between a serial they prefer to shift toward

any other channel or like to watch something else. Thus I asked a question to the

respondents that do they really pay attention towards the ads shown on the television andthereafter I found the following result:

Table 5 showing attention of people towards advertisements

Always Mostly Sometimes Rarely Never

16% 42% 32% 10% 0%

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Attention towards advertisement

16%

42%

32%

10% 0% Always

Mostly

Sometimes

Rarely

Never

Is it appropriate to show advertisements in television?

Here comes the most important question, this question helps us in knowing the perception

of the customers towards advertisements all the viewers were asked that do they consider

that showing of advertisement on television is a appropriate thing. The following results

were obtained for the above-asked questions.

Table 6 showing the viewers response toward whether it is appropriate

to show advertisement on television

Items Yes No

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No of Respondents 43 7

Percentage 86% 4%

Viewers reponse

86%

14%

Appropriate

Not-Appropriate

Thus from the above data the fat can be made clear that 86% of the viewers said that it is

appropriate to show advertisements on the television and only 14% of the viewers said

that it is inappropriate to show advertisements on television as they feel that

advertisement is not of any use but in contrast the majority of viewers had a positive

response and they say that advertisements should be shown on the television and it gives

a good information about the product and helps in providing the information.

Final impact of advertisement

To know the final impact of advertisement on the viewers they were asked that whether

they have bought any product after watching the advertisements and the following results

were obtained from the respondents

Table 7 showing whether customers purchase any product after seeing

the advertisement on television

Items Yes No

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Number of respondents 44 6

Percentage 88% 12%

The impact of advertisement

88%

12%

Yes

No

Thus from the question asked that whether the customers have purchased any product

after watching the advertisement gives a clear cut outcome for the research done by me

out of the total 50 respondents 44 replied that yes they have purchased a product after

watching the advertisements and only 6 i.e. 12% of the respondents replied that they do

not buy any product after watching the advertisement they might be influenced by some

other things like emotional attitude or because of their habits.

Which media of advertisement influences you the most?

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2812

6

4

Television

Newspaper

Magazines

Internet

Thus from the above shown graph it is clear that television advertisements influence the

most on the buying behavior of the consumers as compared to other channels of

advertisements like newspaper magazines and internet.

Conclusion

After doing all the data analysis and the interpretation the result which can be drawn out

is that advertisements shown on television affect the buying decision of the buyer

moreover the showing of advertisement influences the decision of the buyers of some

segment. They are attracted towards the products and most of the have bought a product

after watching the advertisement on television. Some viewers are of the view that it is a

part of entertainment while some others think there is no mean of showing

advertisements on the television but according to the research conducted by me and going

through the data analysis and interpretation it can be said that advertisement has some

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weightage and it contributes towards the promotion of the product and also provides

knowledge about the product and at last most of the viewers are of the viewpoint that

advertisements should be shown on the television as it affects the buyer decision of the

product.

Questionnaire

Q1. Do you watch television?

Yes No

Q2. How often do you watch television?

Less than 2 hours

2 - 5 hours

More than 5 hours

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Q3.Do you Like watching Advertisements on television?

Yes No

Q4. You like watching advertisements because of---

Music Catchy slogans/ Contents

Comedy/ Humor Concepts Used

Information about the product Cartoons / Celebrities

Q5.Does advertisement on television provides you any information regarding theproducts?

Yes No

.Q6. Do you really pay attention towards ads?

Always Mostly

Sometimes Rarely

Never

Q7.Name any three advertisements which influences you to buy a product?

1

2

3

Q8. Do you consider showing of Ads on TV to be appropriate?

A. Yes B. No

Q9.Have you purchased any product after watching the advertisement on television?

Q10.Which media of advertisement influences the most?

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Television Newspaper

Magazines Internet

Personal Information

Name:

Age:

Telephone No.

Educational qualification

Undergraduate Graduate

Postgraduate Ant other

Occupation

Businessmen / women Service

House wife Student

Professional Any other

Bibliography

Kothari, C.R, research methodology, 2004, New Age International Ltd., New

Delhi, Edition 2, Pg. 46 49

Shajahan,Research Methods for Management, 2006, Tata McGraw Hill, 3rd

Edition, Pg. 24- 50

Kotler, Philip and Keller, Kevin Lane, Marketing management, 2006, PearsonEducation, 12th edition, Pg.470-478.

www.google.com

Moriarty, Burnett and Wells,Advertising Principals and Practices, 2004, PearsonEducation 6th edition, Pg.4-37.

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www.ask.com

www.advertisingfactfiles.com

Past research reports
http://www.ask.com/http://www.advertisingfactfiles.com/http://www.ask.com/http://www.advertisingfactfiles.com/

final reseach report new

Documents